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The European naphtha cargo range fell due to lower Brent crude prices

June 17/2011

(ICIS) -- The European naphtha cargo range fell by USD 29/tonne (EUR 21/tonne) due to lower Brent crude prices on Thursday morning. At 10.00 GMT, the naphtha range was assessed at USD 928-936/tonne CIF (cost, insurance & freight) NWE (northwest Europe), with August Brent crude at USD 113.55/bbl and the July crack spread at minus USD 8.75/bbl.

This compares with a range of USD 957-965/tonne CIF NWE at 3.30 GMT on the afternoon of 15 June, when August Brent was at USD 117.80/bbl and the crack spread at minus USD 9.60/bbl.

The naphtha market has been oversupplied in recent weeks and a fall in prices may lead to expectations of increased demand. However, todays price drop has so far had little effect.

With downstream products priced in euros, the current exchange rate means that the impact of the crude price drop on petrochemical values is not sufficient to instigate demand for naphtha, the source said.

Furthermore, buyers are said to be waiting for July contract prices to be settled for products such as ethylene (C2) and propylene (C3) before purchasing further quantities of naphtha.

Tags:naphta, propylene, ethylene.
Category:General News
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